Your Guide to Arizona Real Estate

Diane Olson is one of the few in the marketplace who truly understands real estate issues in both Canada and the US. Being able to access this kind of expertise is critical when purchasing or selling property in another country. For starters, she has one of the best teams in the business – Arizona seasoned yet well versed and able to speak ‘Canadian’! She also offers a wide and trusted network of suppliers and professional services on both sides of the border.

Even with a weaker Canadian dollar and the rising prices of Arizona homes, the Arizona real estate market is still much more affordable than most Canadian markets.

Making the decision to purchase Arizona real estate is a big one. To get you started, here’s a roadmap to help you think through the major aspects of the journey you’re about to undertake.

Just like in Canada, property taxes are based on the assessor’s valuation of your home. As a rule of thumb in Arizona, expect to pay somewhere between .8 and 1.5% of your purchase price. Unlike Florida, which charges foreign buyers extra, Arizona treats all property owners the same.Another perk is that there are no sales taxes on the purchase of a home in Arizona.

Finally, the vast majority of communities in Arizona are locally governed by a Home Owners Association (HOA). A homeowners association fee (HOA fee) is an amount of money that must be paid monthly (sometimes quarterly or bi-yearly) by owners of certain types of residential properties, and HOAs collect these fees to assist with maintaining and improving properties in the association. These HOA fees vary greatly and can range from $300 per YEAR to $300+ per MONTH. Make sure to do your homework!

The question we get asked most often is about the cost of running a household in Phoenix. While we can’t estimate pricing because of the wide fluctuation in sizes of homes purchased, we can offer the following outline of services you may want/need:

Power – both natural gas and electricity are available in most communities, except in some mountainous areas where only electricity is offered.

You will want to keep your air conditioning on during Arizona’s hot summer months. When you leave for the season, set it between 85 – 90 degrees Fahrenheit. Costs will depend on the size and energy efficiency of your home.

A weekly pool service is a must during summer. Again, we’re happy to provide you with trusted contacts used by many other Canadians

Home security companies offer ‘home automation’ services which allow you to control the temperature of your home (as well as lights etc.) from the comfort of your home in Canada.

Water – city services are available just like in Canada

Cable/satellite/phone – a number of companies provide all options

Property Management – to care for all your needs including yard and home care

Closing on a property is much different in Arizona than in Canada and is completed by the use of a Title Company and not a lawyer/law office.

Once the parties to the transaction (buyer/seller/ender and/or borrower) have reached an agreement, the signed contract or purchase agreement, along with the buyer’s earnest money deposit, is submitted to the escrow holder which is consider escrow to be opened.

The escrow holder will now follow the future written instructions of the buyer and seller, maintaining a neutral stance to facilitate the successful exchange of money and property between the parties.

During the escrow period, the title department begins researching and examining all historical records.

The transaction may include the following:

Opening escrow and deliver earnest money deposit to held in a separate escrow account.

Conduct a title search to determine ownership and status of the subject property

Issue a title commitment and begin the process to delete or record items to provide clear title to the property. If applicable, request payoff information from the seller’s loan, other liens and HOA fees.

Prorate fees, if applicable

Prepare a settlement statement and set up appointments require for closing

When all funds are deposited, record documents at the county recorder to transfer the subject property to you.

After recordation is confirmed, close escrow and disburse funds, including seller’s proceeds, loan payoffs, real estate agent’s commission and related fees for recording.

Contact Diane to discuss your potential purchase and help you plan your road map! We are proud to offer our clients a full and trusted network of contacts – both in Arizona and Canada – so you can rest easy knowing you’ll be in good hands, no matter what you need help with. We will make your experience of purchasing an Arizona property stress free and easy!